Stock Market Surge or Sell-Off? What to Expect from Nifty 50 & Sensex on April 21
Stock Market
Stock Market : Today’s Nifty 50 and Sensex: The Gift Nifty indicators also point to a poor start for the Indian benchmark market. The Gift Nifty was down around 51 points from the previous close of the Nifty futures, trading at about 23,800.
Due to weak global market signals, the key Indian stock market indices, the Sensex and Nifty 50, are probably going to open lower on Monday.
Additionally, the Gift Nifty trends show that the Indian benchmark index is off to a bad start. The Gift Nifty was down around 51 points from the previous close of the Nifty futures, trading at about 23,800.
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The next set of Q4 results, US tariff policy, this week’s derivatives expiration, US-Iran trade discussions, the Russia-Ukraine truce, gold and dollar trends, and other significant events will be among the main stock market triggers that investors will be watching.
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Due to Good Friday, the Indian stock market was closed on Friday, April 18.
The Nifty 50 closed above 23,800 on Thursday, marking a solid finish to the domestic market.
The Nifty 50 closed 414.45 points, or 1.77%, higher at 23,851.65, while the Sensex climbed 1,508.91 points, or 1.96%, to conclude at 78,553.20.
What to anticipate from today’s Sensex, Nifty 50, and Bank Nifty is as follows:
Today’s Sensex :
On the weekly charts, the Sensex formed a bullish candle after jumping more than 1,500 points to close above the 78,500 barrier last week.
Although we think the market is in a positive short-term phase, range-bound activity could be seen soon because of transient overbought conditions. Amol Athawale, VP-technical Research at Kotak Securities, stated that the Sensex levels of 77,400 and 76,900 will serve as important support zones for traders, while resistance areas for bulls might be located between 79,000 and 79,600.
But if the Sensex falls below 76,900, traders may decide to sell their long holdings as mood shifts.
Prediction on the Nifty 50 :
On Thursday, the Nifty 50 saw a clear upward breakout and ended the day 414 points higher.
The daily chart showed the formation of a long bull candle, indicating a quicker upside retracement of the recent down leg (9 days of loss had been fully retraced in 7 days of upmove). This is a sign of a major upward trend reversal, which is encouraging. On the weekly chart, the Nifty 50 opened with a gap up and created a long bull candle. “Over the past two weeks, this is a pattern of consecutive long bull candles,” stated Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
One may think of the unfilled weekly starting upside gap as a bullish breakaway gap, which typically forms at the start of sharply upward trending movements.
“The next upward levels to watch are approximately 24,550 (a 61.8% retracement from the peak on September 24 to the bottom on April 25).” “At 23,600 levels, immediate support is placed,” Shetti stated.
The Nifty 50 index showed strong follow-through buying, according to Om Mehra, Technical Research Analyst at SAMCO Securities. It formed a powerful bullish candle on the daily chart with a huge body and a short lower wick, indicating prolonged upward momentum.
The Nifty 50 has shown new power and tenacity by breaking beyond the prior resistance level of 23,870, indicating that the present bullish undertone may persist in the near future. The 200-day simple moving average, which is situated at 24,050 and serves as the next significant barrier, is currently in range of the index, which is comfortably trading above all short-term moving averages, Mehra added.
Stock Market Update –
Asit C. Mehta Investment Interrmediates Ltd.’s AVP Technical and Derivatives Research, Hrishikesh Yedve, claims that the Nifty 50 has shown underlying strength by forming a powerful bullish candle on both the daily and weekly charts.
A prolonged rise towards 24,050, the location of the 200-Day Simple Moving Average (200-DSMA), may be possible if the 23,900 level is maintained. A clear rise over this could pave the way for another upward movement in the direction of 24,200. On the downside, 23,800 and 23,500 provide quick support. A “buy on dips” strategy is still advised as long as current levels are maintained, Yedve stated.
Bank Nifty Prediction :
The Bank Nifty index continued its upward trajectory on Thursday, rising 2.21% to close at 54,290.20.
On both the daily and weekly charts, the Bank Nifty index created a large bullish candle that demonstrated underlying strength after decisively crossing the crucial trend line resistance zone of 52,800. The Bank Nifty is currently immediately supported by the 52,800 breakout zone; if this level is held, the index may rise to between 54,500 and 55,000. Therefore, traders are encouraged to use a “buy on dips” approach, according to Hrishikesh Yedve.
The Bank Nifty is currently trading comfortably above all major moving averages and has decisively surpassed its prior resistance of 53,670, which is anticipated to serve as immediate support in the near term, according to Om Mehra. The index is still showing strong positive undertones.
Strong momentum is indicated by the daily RSI’s continued elevation above the 70 mark. The concurrent upward surge in the Nifty Private Bank and Nifty PSU Bank indices further supports the optimistic outlook and suggests the trend may continue in the future, Mehra said.
